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Technology Stocks : NEXTEL -- Ignore unavailable to you. Want to Upgrade?

To: Rono who wrote (7934)	10/15/1998 10:02:00 AM
From: Rob Prickett	Read Replies (2) \| Respond to of 10227

Ron, The 25,000 drop in subscribers is being projected quarter-over-quarter (run rate). So, multiply your estimate by 4. Akerson indicated on the conference call that he expects domestic growth to be in the 350 - 400 K per quarter over the next several quarters, and maybe in the year 2000. Take heart. The bad news is out. The worst will be over soon. Nextel is a real company building a solid business. Rob

To: Rono who wrote (7934)	10/15/1998 10:15:00 AM
From: Ken Benes	Read Replies (1) \| Respond to of 10227

Whether it is justified or not, what counts is what the market thinks and how it reacts. We are still early on in any slowdown and should one develop, nextel will be impacted. Because of leverage and its close ties to the construction business, nextel has always been vulnerable to any hint of weakness. Today, markets may be somewhat irrational and investors may only see the negatives and not the positives. I am hoping that nextel can find support at the 15 level. Ken

To: Rono who wrote (7934)	10/15/1998 12:10:00 PM
From: P.T.Burnem	Read Replies (2) \| Respond to of 10227

But I don't understand how an increase in ARPU can be ignored. An increase in ARPU along with a slowdown in subscriber growth points to Nextel's failure to attract regular cellphone customers. The Nextel's business plan is largely based on an assumption that their subscribers will use both voice and SMR services. This is not happening. Having stuck with maintaining a nationwide infrastructure, Nextel can't survive on their digital SMR offering alone. A second-generation digital SMR (900MHz) will put them out of their misery. As far as I am concerned, Nextel is headed toward oblivion. PTB